On 20 October 2021, the European Commission adopted a Delegated Regulation containing amendments to the regulatory technical standards (RTS) in Commission Delegated Regulation 1151/2014 which contains information to be notified when exercising the right of establishment and the freedom to provide services under the CRD IV.
The Delegated Regulation introduces amendments to improve the quality and consistency of the information to be provided by credit institutions notifying their home competent authorities of their intention to open a branch or provide services in another Member State or to cease their cross-border activity. In particular, the focus is on:
- The request to the credit institution to indicate as accurately as possible the intended start date of each activity for which the notification is submitted, as opposed to just the core business activities as currently envisaged.
- The granularity of information on the financial plan to be notified in case of establishment of a branch. Assumptions underpinning forecasts are now expressly requested to be included in the notification.
- The information to be submitted in case of termination of the branch.
The Council of the EU and the European Parliament will now scrutinise the Delegated Regulation. If neither object, it will enter into force 20 days after its publication in the Official Journal of the European Union.